Investing.com - Crude oil prices were under pressure on Thursday, as the U.S. dollar strengthened after the Federal Reserve ended its monthly bond-buying program and signaled a more hawkish tone in its FOMC statement.
On the New York Mercantile Exchange, crude oil for delivery in December traded at $81.38 a barrel during European morning hours, down 82 cents, or 1%.
Futures were likely to find support at $79.44 a barrel, the low from October 27, and resistance at $82.88 a barrel, the high from October 29.
Elsewhere, on the ICE Futures Exchange in London, Brent for December delivery lost 72 cents, or 0.83%, to hit $86.40 a barrel.
The Federal Reserve ended its large-scale asset purchase program, known as quantitative easing, at the conclusion of its two-day policy meeting on Wednesday, as widely expected.
The Fed retained its commitment to keep interest rates near zero for a “considerable time," but sounded more hawkish on the labor market, saying that “underutilization of labor resources is gradually diminishing.”
Prior statements from the Fed described the slack in the jobs market as "significant."
The US dollar index, which tracks the performance of the greenback against a basket of six major rivals, surged to a three-and-a-half-week high, as market players brought forward expectations of when the Fed would eventually raise rates.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Later in the day, the U.S. was to publish preliminary data on third quarter GDP, as well as the weekly report on initial jobless claims. In addition, Fed Chair Janet Yellen was to speak at an event in Washington.
London-traded Brent prices have fallen nearly 25% since June, when it climbed near $116, while WTI futures are down almost 24% from a recent peak of $107.50 in June.
Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent weeks.
Some market analysts believe that only a cut in production by the oil cartel will halt the decline in prices.
Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target for early 2015.